The suspension of export controls took effect on Wednesday and will last for 90 days, the China’s Ministry of Commerce said in a statement. China initially blocked exports of seven types of rare earths for 16 US entities on April 4, then added 12 additional entities on April 9.

The U.S.-China trade war and the Trump Administration’s priority on minerals led to MP Materials, owner of America’s only scaled rare earth production source – Mountain Pass – suspending exports of rare earth concentrate to China. Before the suspension, 80% of the rare earth concentrate was being shipped to China for refining.

China trade war abates and Beijing eases more rare earth export controls, American buyers are expected to take a skittish long-term view of Chinese sourcing.

Rare earth export permits for U.S. customers are likely to have an easier time getting approval from Beijing after Monday's trade war truce, however a complete removal of the restrictions is unlikely,

China both wants to use its dominance of rare mineral mining as leverage, while at the same time proving to U.S. companies it can be a reliable supplier.

The US has expressed concerns about the impact of the restrictions on industries ranging from defense to renewable energy, given China's dominant role in rare earths processing. More than 90 percent of rare earths are currently smelted and processed by China.

Citing industry sources familiar with the matter, Reuters reported on Wednesday that China has granted its first rare earth export permits since adding restrictions last month. The sources said that China has issued export permits to at least four rare earth magnet producers, including suppliers to Volkswagen, the German carmaker.

The price of dysprosium in Europe -- the benchmark for the material outside China -- tripled from the start of April to $850 per kilogram as of Thursday, according to Argus Media. Terbium increased to $3,000 per kilogram from $965.

The U.S. agreed to cut tariffs on Chinese goods from 145% to 30%, while China committed to reduce tariffs on U.S. products from 125% to 10%. The lowered tariffs will remain in place for 90 days while the two sides negotiate a wider trade deal.

Experts have urged India to explore innovative solutions to skirt the curbs, from e-waste recycling to extracting rare earths from oil wells.

China has issued export permits to at least four rare earth magnet producers including suppliers to Volkswagen , the German carmaker and industry sources said, the first granted since Beijing restricted shipments last month and a sign that the critical materials will continue to flow.